Home >market >stock-market-news >Stock pickers see Brexit contagion in India tech to Turkish cars

London: As investors sized up the shadow cast by Britain’s Brexit vote over emerging markets, everything from Turkish car makers to Indian technology companies and a South African platinum producer came under the spotlight.

Top of the at-risk list following Friday’s referendum result are companies and industries with the strongest ties to the UK and Europe, where demand for consumer products may slow in the aftermath of the trading bloc’s fracture.

Here are some of the industries and stocks most exposed to Brexit based on their dependence on sales in Britain, as well as how much they will suffer from currency depreciation, according to JPMorgan Chase and Co. and UBS Group AG.

South African companies

Impala Platinum Holdings Ltd. derived 21% of its revenue from European sales in 2015, according to data compiled by Bloomberg. “Any threat to Western European platinum group metal demand poses a greater risk to Impala than its peers near term," according to JPMorgan, which said the miner is least able to weather a drop in prices.

Discovery Ltd, owner of the nation’s biggest medical-insurance administrator, makes 22% of its sales in the UK, according to UBS. The stock has fallen 11% this year, underperforming the Johannesburg benchmark. Britain is South Africa’s fourth-biggest export market.

Polish banks

Bank Zachodni WBK SA and Bank Pekao SA would face bigger losses from any government decision to force lenders to convert Swiss franc mortgages into the local currency as the zloty plummets in the wake of Brexit. There are $34 billion of mortgages denominated in francs, a currency that tends to gain in times of turmoil.

Indian technology

Infosys Ltd, Asia’s second-largest exporter of software services by market value, derived 24% of its revenue from Europe, according to 2015 data compiled by Bloomberg. Tata Consultancy Services Ltd, a global IT services company headquartered in Mumbai, India, received 28% of revenue from Europe last year, data compiled by Bloomberg show.

The impact of postponed software spending in Europe before Brexit will already be reflected in second-quarter earnings reported in July, according to Anurag Rana, senior industry analyst with Bloomberg Intelligence in New York. “With this vote, it is possible that there could be further cuts in tech spending for this year and next," he said.

Turkish manufacturers

Auto maker Ford Otomotiv Sanayi AS generates about 23% of its sales volume from the UK, while for Tofas Turk Otomobil Fabrikas AS, that figure is 7%, according to Istanbul-based Burgan Yatirim Menkul Degerler. Britain is Turkey’s second-biggest destination of exports.

Arcelik AS, which exports appliances, gets about 10 to 15% of revenue from the UK, according to Burgan Yatirim. Koc Holding AS, which owns stakes in all three companies, slid 5.3% on Friday.

Latin America

Cemex SAB, the largest cement maker in the Americas, relied on the UK for almost 9% of its sales last quarter and 22% from Europe. Mexichem SAB, which produces chemicals that are used to make everything from pipes to children’s toys, gets 37% of sales from Europe. Nemak SAB, a Mexican auto-parts maker partly owned by Ford Motor Co., got about a third of its revenue from Europe last quarter. Embraer SA, the Brazilian planemaker, got 13% of sales from the continent.

Malaysian utilities

YTL Power International Berhad generates 26% of its revenue in the UK, according to UBS. Twelve analysts have a hold recommendation on the stock, while three say investors should buy the shares and one suggest selling it, according to forecasts compiled by Bloomberg. Bloomberg

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